I. The rise of RWA: The asset revolution in the digital age
The global financial system is undergoing a silent yet profound paradigm revolution—real-world asset tokenization (RWA) is reconstructing asset circulation logic through technological innovation. According to forecasts by Morgan Stanley and Boston Consulting, by 2030, the RWA market size will exceed $16 trillion, and it is expected to reach a scale of $50 billion by 2025, becoming the most explosive new territory in the field of digital assets. This transformation involves not only a technological leap but also reshapes the global patterns of asset liquidity and financial inclusivity.
1.1 The essence of RWA: Mapping real-world assets on the blockchain
RWA refers to the transformation of real-world assets into digital tokens on the blockchain, making them storable, transferable, and tradable on-chain. Its technical core lies in the digitization of the rights, income, or ownership of physical assets (such as real estate, bonds, and equipment) through blockchain and IoT (Internet of Things) technology, forming divisible and tradable tokens. For example, real estate ownership can be split into several share tokens, the income rights of artworks can be converted into NFTs, and the output of photovoltaic power stations can generate traceable digital certificates. Compared to native crypto assets like Bitcoin, the key difference of RWA is its anchoring to the value of real assets. Currently, mainstream RWA assets are concentrated in regulatory-friendly areas: green energy (photovoltaic power stations, charging piles), fixed-income products (bonds, money market funds), and trade financing receivables.
In Xiexin Energy's 82MW household photovoltaic project in Hubei and Hunan, IoT devices collect real-time power generation data closely integrated with blockchain custody, successfully converting income rights into 200 million yuan of digital assets. Investors can use the immutable data stream on the chain to verify the operational status of the assets in real-time, ensuring transparency and security of the investment.
1.2 The historical background of the rise of RWA
Over the past decade, the global economic landscape has undergone profound adjustments, and the limitations of the traditional financial system have become increasingly evident. The shadow of the 2008 financial crisis has not completely dissipated, and quantitative easing policies have led to excessive currency issuance, with global debt levels hitting new highs. As of 2024, the total global debt has surpassed $300 trillion, with U.S. national debt exceeding $34 trillion and fiscal deficits reaching historical highs. Against this backdrop, investors' confidence in traditional financial markets has been shaken, creating an urgent need to find new asset allocation channels.
At the same time, the rise of blockchain technology has brought new possibilities for financial innovation. Since the birth of Bitcoin in 2009, the decentralized, immutable, and traceable characteristics of blockchain have gradually been recognized and applied. The decentralized finance (DeFi) ecosystem experienced explosive growth in 2021-2022, and despite high volatility and risks during that period, it laid the technological and market foundation for the development of RWA. DeFi's smart contracts, automatic clearing, and trustless trading models provide references for the on-chainization of RWA assets.
The uncertainty of the global macroeconomic situation also drives investors to seek more stable and transparent investment targets. In a high-inflation environment, the demand for safe-haven assets such as gold and government bonds has surged, while the emergence of RWA technology allows these assets to enter the market in a more convenient and efficient manner, meeting investors' needs.
1.3 The development history of RWA: Key nodes from germination to explosion
The concept of RWA did not emerge overnight; its development can be traced back to the early days of blockchain technology. In the early days, some pioneering teams attempted to combine traditional assets with blockchain, but progress was slow due to immature technology and unclear regulations. A real turning point occurred in 2015 with the emergence of USDT, marking the entry of this special RWA asset into the market, which mapped the value of the dollar onto the chain, providing important payment and pricing tools for subsequent RWA development.
In 2018-2019, with the maturity of Ethereum smart contract technology, more RWA projects began to emerge. Some projects attempted to tokenize assets such as real estate and bonds but still faced many challenges, such as asset confirmation and compliance issues. In 2020, the explosion of DeFi Summer brought new opportunities for RWA, as the demand for assets in the DeFi ecosystem prompted more institutions and project parties to pay attention to the RWA field, and some innovative RWA projects began to emerge in the market.
Entering 2024-2025, with the gradual clarification of the global regulatory environment and further maturation of technology, RWA is entering an explosive period. Regions such as Hong Kong and the United States have successively introduced stablecoin-related bills, providing legal grounds for the compliant development of RWA. At the same time, companies represented by Ant Group and Xiexin Energy have made significant breakthroughs in the green energy RWA field, successfully achieving the tokenization of assets such as photovoltaic and charging piles and gaining widespread recognition in the market. Mainstream financial institutions such as BlackRock and Franklin Templeton have also entered the market, launching tokenized fund products, signifying that RWA is moving from concept to mainstream application.
II. Core advantages of RWA: Reshaping asset circulation logic
2.1 Liquidity revolution: Unlocking dormant assets
Traditional high-value assets, such as real estate and artworks, have long faced liquidity dilemmas due to their indivisibility. For example, a property worth millions or even tens of millions makes it difficult for ordinary investors to participate, and the transaction process is cumbersome, from finding buyers, negotiating, signing contracts to transferring ownership, which can take several months and involve high intermediary fees and taxes. The artwork market similarly faces similar issues, where the trading of a precious artwork is often limited to a few high-end collectors, resulting in poor market liquidity.
RWA fundamentally changes this situation through digital fragmentation. It divides high-value assets into small tokens, allowing investors to participate in investments with small amounts of $100. At the same time, leveraging blockchain's global network, continuous trading 7×24 hours is realized. In a commercial real estate project in Hong Kong, the RWA model attracted over 3,000 retail investors, with fundraising efficiency increased by more than 5 times compared to traditional methods. Investors can conveniently buy and sell asset shares anytime and anywhere through digital wallets, greatly enhancing asset liquidity and revitalizing dormant assets.
2.2 Financing efficiency leap: Smart contracts simplify processes
Under traditional financing models, enterprises often face a lengthy and complex process from preparing for financing to finally obtaining funds. For example, in the case of new energy companies, financing typically requires project evaluation, bank approval, guarantee agencies' involvement, securities issuance, and other stages, involving numerous intermediary agencies and regulatory departments. The entire financing cycle may take up to 4 months or even longer, during which enterprises not only have to pay high intermediary fees but also face various uncertainties, such as approval failures and policy changes.
RWA greatly simplifies this process through smart contracts. Smart contracts are self-executing contracts based on blockchain technology that encode the terms and conditions of financing in the form of code. Once the preset conditions are met, the contract is automatically executed without manual intervention. In an RWA project of a certain renewable energy company, smart contracts achieved automated issuance management and real-time information disclosure, greatly compressing the financing cycle from 4 months to 3 weeks and reducing financing costs by 35%. This not only increases financing efficiency for companies but also lowers costs, enabling enterprises to invest funds in project construction and operation more quickly, promoting their development.
2.3 Investment democratization breakthrough: Inclusive finance implementation
Under the traditional financial system, high investment thresholds have kept many ordinary investors out. For example, participating in private equity investments typically requires investors to have a net worth of millions and has strict requirements for investor experience and risk tolerance. This makes it difficult for the general public to share in the dividends of high-yield investment projects, and the problem of uneven distribution of financial resources has become increasingly prominent.
RWA breaks this limitation, achieving the democratization of investment. The charging pile income rights tokenization project of Langxin Technology allows ordinary investors to hold fragmented income shares from charging piles. Investors only need to spend a small amount of money to participate in the investment of large infrastructure projects and share in the project's profits. This model promotes the implementation of inclusive finance, allowing more people to participate in economic development, facilitating fair distribution of financial resources, and enhancing the inclusiveness of the financial system.
2.4 Trust mechanism reconstruction: Blockchain guarantees transparency
In traditional asset trading, information asymmetry and trust issues have always been major factors hindering market development. For example, in bond trading, investors find it difficult to obtain real-time information on the true value of bonds, the issuer's financial status, and other information, posing risks such as issuer fraud and untimely information disclosure. In real estate transactions, there are also issues such as property rights disputes and intermediary fraud.
The distributed ledger technology of blockchain provides strong support for the reconstruction of trust mechanisms. In the RWA project, all transaction records are immutably recorded on the blockchain, and asset data is available in real-time. Through smart contracts and the consensus mechanism of blockchain, the fairness and transparency of transactions are ensured. Research shows that the fraud risk of the RWA project is reduced by 72% compared to traditional models, and the investor confidence index has increased by 58%. Taking a certain RWA bond project as an example, investors can view real-time information on the issuance, trading, and interest payments of bonds through a blockchain browser, eliminating the need to rely on third-party intermediaries for information disclosure, greatly enhancing investors' trust in the project.
2.5 Flexible architectural design: Custom financial services
The design of traditional financial products is often rigid and difficult to meet the diverse needs of different investors. For example, the profit distribution method and redemption period of traditional wealth management products are usually fixed, making it impossible for investors to adjust flexibly according to their risk preferences and funding needs.
RWA empowers companies to independently design differentiated profit distribution, dynamic redemption mechanisms, and more. A certain technology company attracted investors with different risk preferences by issuing convertible income tokens. For investors with lower risk preferences, a fixed income model can be chosen; while investors with higher risk preferences can choose to convert tokens into company equity, sharing in the company's future growth dividends. This flexible architectural design allows companies to customize financial products according to market demand and their own development strategies, providing investors with more personalized financial services and enhancing the vitality and innovation capability of the financial market.
III. Global stablecoin legislative breakthroughs: The compliant catalyst for RWA
3.1 Hong Kong: The stablecoin bill opens a new chapter
On May 21, 2025, the Hong Kong Legislative Council passed the stablecoin bill unanimously, marking a milestone that injected strong momentum into the development of RWA in Hong Kong. This bill clarifies the regulatory framework for stablecoins, stipulating the qualification requirements for issuers, reserve management, anti-money laundering, and counter-terrorist financing standards, providing legal grounds for the compliant issuance and trading of stablecoins.
It is expected that by the end of 2025, Hong Kong will issue the first batch of stablecoin issuance licenses, attracting many institutions to participate in the stablecoin market. At the same time, Hong Kong is actively exploring the issuance of offshore RMB stablecoins to expand the scenarios for the internationalization of the RMB. The launch of offshore RMB stablecoins will provide more convenient and efficient payment tools for cross-border trade and investment, further promoting the circulation of RWA assets globally. The Hong Kong Monetary Authority's Ensemble project sandbox has become the core platform for RWA experimentation, and Huaxia Fund issued the first retail tokenized Hong Kong dollar money market fund in Asia in this sandbox, surpassing BlackRock's similar products on its first day, demonstrating strong market demand for compliant tokenized products.
3.2 United States: The impact of the (Guinness Stablecoin Act draft)
The U.S. Senate simultaneously passed the (Guinness Stablecoin Act draft), which lays the legal foundation for the development of tokenized assets in the United States. The bill provides detailed regulations on the definition, issuance, and supervision of stablecoins, clarifying the compliance requirements that stablecoin issuers must adhere to, such as maintaining sufficient reserves and conducting regular audits.
The passage of this bill allows financial institutions in the United States to participate in RWA projects more clearly. For example, large financial institutions such as BlackRock have launched a series of tokenized fund products under the U.S. compliance framework. These products combine traditional financial assets with blockchain technology, providing investors with more convenient and efficient investment channels. At the same time, the implementation of the bill also helps enhance market confidence in RWA assets, attracting more investors to participate in the RWA market, promoting the development of the RWA market in the U.S. and globally.
3.3 The driving mechanism of stablecoin compliance for RWA
Stablecoins, as payment mediums and pricing units for RWA transactions, will significantly enhance asset circulation efficiency through compliance. Under the compliance framework, the issuance and trading of stablecoins are more transparent and secure, reducing transaction risks. The increased trust of investors in stablecoins will make them more willing to use stablecoins for trading RWA assets, thereby promoting the activity of the RWA market.
Compliant stablecoins can attract the participation of traditional financial institutions. Traditional financial institutions have high requirements for risk control and compliance, and the compliance of stablecoins allows them to confidently enter the RWA market. For example, banks and other financial institutions can cooperate with compliant stablecoin issuers to provide funding support, custodial services, and more for RWA projects. This will further enrich the participants in the RWA market and promote the prosperous development of the market. The compliance of stablecoins also helps solve issues such as currency exchange and payment clearing in cross-border transactions, creating more favorable conditions for the global circulation of RWA assets.
IV. Chinese technology specifications: Building a trusted base for RWA
4.1 Interpretation of (Trusted Blockchain Entity Asset Trusted On-chain Technology Specification)
On March 26, 2025, the (Trusted Blockchain Entity Asset Trusted On-chain Technology Specification), led by the China Academy of Information and Communications Technology and involving nearly 20 enterprises including Ant Group and Xiexin Energy, passed the project initiation, marking China's global discourse power in the standardization of RWA technology. This specification establishes three core principles: trustworthy data sources, verifiable processes, and fully traceable chains.
The trustworthy data source requires data to be obtained directly from certified IoT devices, which must have unique identity authentication, such as built-in trusted SDKs. In the photovoltaic power station RWA project, IoT devices collect real-time power generation data to ensure the authenticity and timeliness of the data. The verifiable process emphasizes cross-validation of operational data and IoT data, achieving 'mutual verification of data authenticity.' For example, in the asset income distribution process, smart contracts automatically compare operational data and power generation data to ensure the accuracy of income distribution. Fully traceable chains ensure that asset lifecycle data is encrypted and recorded on-chain, preventing tampering and enabling auditing. Investors can view the entire process information of assets from generation to transaction through a blockchain browser, enhancing the transparency and security of the investment.
4.2 Ant Group's 'Antchain Inside' solution: Industry paradigm
Ant Group's 'Antchain Inside' solution has become an industry paradigm, with its 'two chains and one bridge' architecture (asset chain + transaction chain + trusted cross-chain bridge) validated in photovoltaic and charging pile scenarios. On the asset chain, underlying assets are digitally registered and managed, ensuring the accuracy and completeness of asset information. The transaction chain is responsible for handling asset trading, settlement, and other businesses, achieving efficient and secure transactions through smart contracts. The trusted cross-chain bridge enables interoperability between different blockchains, breaking the island effect of blockchains and allowing assets to flow freely between different chains.
Taking the photovoltaic RWA project jointly developed by Ant Group and Xiexin Energy as an example, the 'Antchain Inside' solution puts the asset information of photovoltaic power stations on the chain and realizes the trading of asset shares on the transaction chain. Investors can conveniently buy and sell the rights to the income of photovoltaic power stations through digital wallets. At the same time, through the trusted cross-chain bridge, this project can interface with financial services on other blockchains, providing investors with more diversified services. The successful application of this solution provides a reference model for other companies to carry out RWA projects, promoting the widespread application and development of RWA technology in China.
4.3 The global influence of Chinese technology standards
China's leading position in the formulation of RWA technology standards will have a profound impact on the global RWA market. On the one hand, China's technology standards provide references and examples for global RWA projects, helping to promote the standardization and normalization of global RWA technology development. With the successful practice of Chinese RWA projects, more and more countries and regions will pay attention to and adopt Chinese technology standards, enhancing the quality and safety of global RWA projects.
On the other hand, the output of Chinese technology standards will enhance China's discourse power and influence in the global RWA market. Chinese enterprises can leverage their advantages in the formulation of technology standards to expand their business in international markets and participate in global RWA project competition. At the same time, China's technology standards will attract more international cooperation, promoting the integration and collaborative development of resources in the global RWA market. For example, under the 'Belt and Road' initiative, China's RWA technology and standards can be combined with infrastructure construction projects in countries and regions along the route, promoting the landing of cross-border RWA projects and injecting new vitality into global economic development.
V. Benchmark projects landing: RWA from concept to scaling
5.1 RWA practices in the green energy field
5.1.1 Xiexin Energy: China's first photovoltaic RWA project
Xiexin Energy achieved a significant breakthrough in the RWA field, successfully completing China's first photovoltaic RWA project. This project tokenized the income rights of an 82MW household photovoltaic power station located in Hubei and Hunan through IoT + blockchain technology. By deploying IoT devices in the photovoltaic power station, real-time power generation data is collected and uploaded to the blockchain for custody. Based on this real and reliable data, the future income rights of the photovoltaic power station are converted into digital assets, issuing tokens worth 200 million yuan.
The implementation of this project has brought significant benefits to Xiexin Energy. Financing costs were reduced by 30% compared to traditional financing models, greatly alleviating the financing burden on the enterprise. Meanwhile, through the RWA model, the project attracted more investors to participate, broadening the financing channels. Investors can share in the income of the photovoltaic power station by purchasing tokens, achieving effective docking of green energy assets and capital markets. The success of this project not only provides funding support for Xiexin Energy's further development in the green energy field but also offers valuable experience for other companies to carry out photovoltaic RWA projects.
5.1.2 Langxin Group: Tokenization of charging pile income rights
Langxin Group collaborated with Ant Group to tokenize over 9,000 charging pile income rights, successfully financing 100 million yuan in the Hong Kong Monetary Authority's sandbox, reducing costs by 30% compared to traditional models. In this project, Langxin Group utilized its advantages in the charging pile operation field to integrate its charging pile assets. Through blockchain technology, the future income rights of the charging piles were digitally processed to issue tokens.
After investors purchase tokens, they can receive corresponding profits based on the actual operation of the charging piles. This project addresses the financing difficulties in the construction and operation of charging piles, reducing financing costs. At the same time, it provides investors with a new investment option, sharing in the dividends of the charging pile industry's development. In addition, the successful practice of this project in the Hong Kong Monetary Authority's sandbox serves as a model for other enterprises to carry out RWA projects in Hong Kong, promoting the development of the RWA market in Hong Kong.
5.2 Innovations in RWA in real estate and finance
5.2.1 MANTRA (OM): Real estate tokenization in the Middle East
MANTRA (OM) successfully tokenized over $1.5 billion in real estate in the Middle East, including quality assets such as hotels and office buildings from Dubai's DAMAC Group. MANTRA obtained a Dubai VARA license, achieving compliant asset circulation. Through blockchain technology, real estate ownership is divided into digital tokens, allowing investors to purchase these tokens and own partial rights to the real estate.
This model brings new vitality to the real estate market in the Middle East. On the one hand, it improves the liquidity of real estate assets, allowing investors to more easily buy and sell real estate shares, lowering the investment threshold. On the other hand, through the transparency and traceability of blockchain,
